Previously, I serendipitously met an experienced elder in the crypto space, who turned an initial capital of tens of thousands into a fortune of over a hundred million. He once shared with me his feelings about 'gaining insight in trading cryptocurrency', and now I truly understand. The greatest benefactor in life is not sudden wealth or lottery winnings, but rather meeting someone who breaks your cognitive barriers and elevates your perspective, leading you to a broader stage. In fact, whether in life or investment, the boundaries of cognition determine the height of wealth, and the underlying logic supports all decision-making!
Before understanding, trading cryptocurrency is like navigating a maze, as difficult as climbing to the sky; after understanding, one realizes that patterns are hidden in details, making it simple and easy to grasp. Many stock market experts, after gaining insight, can quickly adapt to the crypto space; however, many retail investors always feel that experts making money in cryptocurrency are those who have spent countless hours learning and enduring numerous losses — but that’s not the case; finding the right direction is more important than blind effort.
I can’t claim to be a top trader, but I have achieved stable profits for 10 years. Today, I’m willing to share my trading mindset: fourth-rate traders rely on technical indicators, third-rate traders focus on fund management, second-rate traders depend on investment philosophy, first-rate traders win with mindset, while super traders rely on comprehensive qualities.
The 10 Consistencies in Choosing Currencies and Marrying
Choosing a wife requires genuine recognition; you would never randomly pick someone on the street! (Choosing currencies also requires your own value judgment; select those with solid fundamentals that align with long-term logic.)
You must carefully understand your future wife's background, including her family situation and character! (When selecting currencies, deeply investigate the background of the team, technical strength, and community ecology; don’t touch projects with 'unclear backgrounds'.)
You definitely wouldn’t marry a woman you don’t plan to spend your life with! (If you don’t plan to hold a currency for 3-5 years, definitely don’t buy it; short-term speculation is likely to get you cut.)
After marrying, living together daily, the key to a good life in the future lies in mutual adjustment and management! (How returns perform after holding a currency depends on your depth of understanding of the currency and your holding strategy.)
If your wife is in a bad mood and ignores you, you need to understand the reason: Is it a misunderstanding or a principle issue? (When a currency drops, distinguish whether it is a short-term correction or a fundamental deterioration — if there’s a real problem, stop loss; if it’s just normal fluctuations, hold your position, remembering the logic behind your initial purchase.)
Avoid one-night stands; even encountering a problem just once in ten tries could ruin you! (Don’t engage in illogical short-term gambling; blindly chasing highs and cutting losses will lead to major pitfalls eventually.)
Don’t always think about finding a 'little wife'; in fact, one reliable partner is enough for you to manage with care! (Don’t be tempted by 'new hotspots' in the market; frequent shifts in positions will only distract you; focusing on 1-2 quality currencies is easier for profit.)
During holidays, you must visit your father-in-law’s house regularly to learn more about family dynamics! (You need to regularly pay attention to official announcements and community movements of currencies to grasp first-hand information, avoiding losses caused by information gaps.)
After having children, you must educate them together with your wife, not only rely on school teachers! (When holding currencies, you need to take active measures: for example, during market fluctuations, engage in high sell-low buy to reduce costs, adjusting strategies based on fundamentals and trends, rather than being a 'hands-off manager'.)
As a couple, raising children well so that they can be independent and filial means you can enjoy life in peace! (As time goes by, the value of the currency is realized and profits continue to grow; you can gradually take profits in batches, securing returns to enjoy them.)
The essence of trading cryptocurrency is 'simplifying the complex': simplify complex market analysis and diligently execute simple operational discipline; the path to success is not far!
I have traded cryptocurrency for 10 years, from having nothing to achieving 'supporting my family through trading'; I have summarized a set of practical experiences, each point is a nugget of wisdom gained through real money, hoping to help you avoid detours for several years:
1. Core Survival Rule: Staying Alive is Key
Fund Management is Fundamental: Divide the principal into 5 parts, using only 1 part for each trade; strictly control each individual loss within 10%, and total fund loss per trade not exceeding 2%. Even if you make 5 consecutive mistakes, the total loss is only 10%, and by capturing just 1 trend market, you can easily recover and profit.
Follow the Trend, Don’t Go Against It: Don’t blindly bottom fish when the market is falling; it’s likely a trap to induce buying; wait for clear stabilization signals. Also, don’t rush to sell when the market rises; it could just be a short-term correction; 'buying low' is more prudent than 'catching the bottom' to avoid missing out.
Stay Away from Short-term Surging Coins: Whether mainstream or altcoins, very few can sustain surges; most will enter stagnation or correction after a spike. Don’t take chances hoping for 'continued high prices'; low probability events aren’t worth the risk.
Rational Use of Technical Indicators: For instance, MACD, when the DIF line and DEA line form a golden cross below the 0 axis and break through it, it’s a potential buy signal; forming a death cross above the 0 axis and declining means consider reducing positions. There are principles to averaging down: never average down when in loss (the more you average down, the more trapped you become), but it’s okay to add to positions when in profit (let profits run).
Trading Volume is a Core Signal: Focus on 'low-level breakout with volume' — this is a key signal for market initiation. Only trade in upward trending currencies, closely monitor the 3-day, 1-hour, 4-hour, and 8-hour moving averages; when the moving averages collectively turn upwards, it indicates an established upward trend.
Review and Adjustment Cannot Be Neglected: After each trade, review the transaction to clarify 'why to buy, why to sell, where it went wrong', adjust subsequent strategies based on the weekly K-line trend to avoid repeated mistakes.
2. Advanced Thinking: From 'Making Money' to 'Making Money for the Long Term'
Invest with 'Unlimited Funds': The funds must be absolutely free — no interest pressure, not in a hurry to use them, so you can withstand market fluctuations without being swayed by short-term emotions.
Profit from Market Traps: When looking to go long, the 'bear trap' (false drop to induce shorting) is the best entry point; when looking to short, the 'bull trap' (false rise to induce buying) is the best opportunity; learn to reverse utilize market sentiment.
Avoid Over-Trading: Don’t open positions frequently; ensure that the margin for a single trade does not exceed 10% of the principal; over-trading is a major cause of 'liquidation'.
The Crypto Market is a Training Ground: Greed, fear, and luck — these human weaknesses are magnified in the market. The essence of conquering the market is conquering your own weaknesses — those who can control their desires and remain rational win against 80% of retail investors.
Accept 'Not Every Trade is Profitable': Every trade carries a risk of loss; don’t indulge in daydreams of 'certain profits'. Treat every decision seriously, always focus on fund management, and remain vigilant.
Trading Psychology Determines Success or Failure: Stay grounded when making money and calm when losing money; stable emotions enable rational judgments. True experts can maintain composure during extreme market volatility.
3. Can 2000 dollars turn into 30 million? Let’s talk about practical operations.
Core Logic: Use contract trading to amplify returns, but never get over-leveraged. First, convert 2000 dollars into about 300U, and operate in two stages:
Stage One: Small Funds Snowballing (300U→1100U)
Only enter with 100U at a time, focusing solely on recently hot and moderately volatile currencies. Remember two principles: ① Exit once you double your investment (for instance, 100U turns into 200U, exit immediately); ② Cut losses if it drops to 50U. If lucky enough to win 3 times in a row, you can roll from 100U to 800U (100→200→400→800), then make a small profit of around 300U and stop — at this stage, luck plays a major role, so don’t be greedy!
Stage Two: After Fund Expansion, Strike Combinations (Starting at 1100U)
Divide funds into three parts, corresponding to different strategies:
Short-term Speculative Type (100U): Focus on short-term fluctuations on a 15-minute cycle, choosing highly liquid currencies like Bitcoin and Ethereum. For example, if the market suddenly surges, quickly join in, profit 3%-5% and exit, accumulating profits through 'small profits and high sales'.
Regular Investment Type (15U weekly): Invest a fixed 15U each week to buy Bitcoin contracts (for instance, optimistic about a long-term rise from 50,000 to 100,000 dollars), akin to a piggy bank; don’t panic when it drops, nor sell when it rises; suitable for those who can’t keep track of the market.
Trend Orders (Remaining Funds): Seize major market movements with hefty positions! For example, if predicting a Fed rate cut or expecting a Bitcoin surge, open long positions. But rules must be set in advance: profit-taking at a certain amount (like doubling), stop-loss at a defined loss (maximum 20%); novices should avoid reckless actions and first learn to read news and analyze technical aspects.
Important Reminder
① Each order should not exceed 1/10 of the principal; never go all in; ② Always set stop-loss for each order; do not harbor illusions of 'holding on will bring it back'; ③ A maximum of 3 trades per day; if you feel restless, shift your focus; ④ Withdraw a portion of profits upon reaching your target; don’t think about 'making another wave'.
4. What to Do When You’re Trapped? Two Strategies for Unwinding
The core of unwinding is 'timely correction', not 'stubbornly waiting to break even', mainly divided into active and passive methods:
1. Active Unwinding
Decisively cut losses: If you discover that your buying decision was clearly wrong (for example, buying at the peak of a surge), don’t hesitate; cut losses promptly to preserve capital — there are plenty of opportunities in cryptocurrency; as long as there’s capital, you can always earn it back.
Flexibly switch currencies: If the currency you hold is weak and likely to drop further, while another currency has clear upward logic, decisively switch positions, using the profits from the new currency to offset the losses of the old currency.
Engage in reverse shorting: If you’re deeply trapped and confirm that the currency will drop significantly, first sell the trapped currency, then buy back when it drops to a lower position, reducing costs through 'selling high and buying low'.
2. Passive Unwinding
Averaging Down: If the buying price is not high and you are optimistic about the long-term market, wait for the currency to correct before averaging down (for instance, average down once after a 10% drop), but do it at most 2 times; don’t force it if funds are insufficient.
Patience to Stay Calm: If fully invested and deeply trapped, without funds to average down, and using your own funds (not borrowed), just wait patiently — don’t act emotionally; wait for the market to warm up before deciding what to do.
5. Practical Trading Tips (Super Practical)
Entry Section: Prepare well for entering the crypto space; step in steadily, don’t rush.
Sideways Market Response Section: After a low-level sideways market breaks below previous lows, it’s a good time to accumulate heavily; if it breaks above previous highs in a high-level sideways market, decisively sell without hesitation. During sideways movements, treat sideways as a drop, hold tight to your assets; be wary of a sharp rise leading to a crash, always be ready to take profits.
Timing for Buying and Selling Section: Don’t sell at highs, don’t buy at lows, and don’t trade during sideways; buy on bearish candles and sell on bullish candles; contrarian strategies are easier to win. If there’s a sharp drop in the morning, you can buy low; if there’s a sharp rise in the morning, sell; don’t chase high prices in the afternoon’s rise, buy the next day if there’s a big drop; if you’re stuck, average down to seek to break even; excessive greed is to be avoided.
Risk Awareness Section: Sudden waves in calm markets may lead to significant fluctuations; after a sharp rise, there will inevitably be a pullback; be cautious of triangular K-line patterns. Look for support in rises and resistance in falls; being fully invested is a major taboo; insisting on a single direction will lead to losses; knowing when to stop is crucial, and seizing entry and exit opportunities.
Trading cryptocurrency and life are actually interconnected: Understanding the underlying logic of life also helps understand the investment logic in the crypto space. The path to success is simple; only by 'knowing and acting in unity' can one navigate the market smoothly and remain undefeated!
Welcome to follow Brother K, where you can observe real-time operations for learning and communication, and timely acquire market direction and strategies — whether the market is rising or falling, pre-judgment allows for calm response. Brother K only conducts real transactions; there are still a few spots left in the trading team, so act fast if you want to join!
